Dáil Éireann Debate, Wednesday - 19 October 2016
42. Deputy John Brady asked the Minister for Finance the reason a person who has spent €20,000 modifying a taxi to make it wheelchair accessible is being quoted over €5,000 for insuring the vehicle; and if he will make a statement on the matter. [31106/16]
Amharc ar fhreagraAs Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I, nor the Central Bank of Ireland, have the power to direct insurance companies on the pricing of insurance products. The EU framework for insurance expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products.
The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and the need to provide for adequate provisioning to meet those risks. These are considered by insurance companies on a case by case basis.
My Department has embarked on a review of policy in the insurance sector which is being undertaken in consultation with the Central Bank and other Departments and Agencies. The objective of the Review is to recommend measures to improve the functioning and regulation of the insurance sector.
As part of that Review, I have established the Cost of Insurance Working Group, chaired by the Minister of State Eoghan Murphy T.D. This Working Group is examining the factors contributing to the increasing cost of insurance and identifying what short-term, medium-term and long-term measures can be introduced to help reduce the cost of insurance for consumers and businesses. The Working Group, which is focussing initially on the issues of rising motor insurance premiums, is due to provide me with an initial set of recommendations at the end of this month. From November to December, the Working Group will then develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of these priority actions. It is my view that the implementation of the action plan will also have an impact on other areas of non-life insurance.
The core areas to be examined by the Working Group in the first phase are:
- The motor insurance sector generally, at present and in recent years
- The effects of legal costs and litigation processes on insurance costs
- The current claims compensation arrangements and the cost of claims
- Insurance data and information
- The impact of accident rates
- The impact of unlawful activity on the insurance sector, and
- Other market issues.
A number of additional issues which impact on consumers and the business sector in relation to motor insurance are also being considered, including the cost of insurance to taxi drivers and hackneys. The Working Group on the Cost of Insurance has met with the National Transport Authority and with taxi driver representatives as part of the consultation process. I am satisfied that issues facing the taxi industry are being considered as part of this cost of insurance review process.
